THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, November 2, 1995 TAG: 9511020372
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY JUNE ARNEY, STAFF WRITER
DATELINE: NORFOLK LENGTH: Medium: 97 lines
Robert K. Williams turned to about a dozen of his victims in federal court Wednesday and tearfully apologized for defrauding them of nearly $300,000 in a scheme that cost some of them their life's savings.
``I don't ask you to forgive me, but perhaps to understand,'' he said. ``Please know that there isn't a day that goes by that I don't hold it to my heart and suffer.''
From their seats in the courtroom, several simply shook their heads no. One later said that Williams, owner of College Planning Services Inc., reminded her of Jimmy Swaggart.
U.S. District Judge J. Calvitt Clarke Jr. sentenced Williams, of Virginia Beach, to the maximum of 24 months in prison and ordered three years of supervision after his release. The judge also ordered Williams to pay restitution of $286,816. The total amount bilked from clients was $293,136. The difference between the sums is the amount that Williams previously returned to one client.
Assistant U.S. Attorney Alan M. Salsbury asked the judge to give Williams a stiff sentence.
``Many of the victims have been left in financial ruin,'' he said.
James O. Broccoletti, an attorney representing Williams, argued for leniency, noting that his client voluntarily returned from Egypt to plead guilty to a single count of mail fraud.
``The quicker he gets out, the quicker he can pay back these people,'' Broccoletti told the judge.
The judge advised Williams, 55, to stay employed after his release. ``If it's necessary for him to work as a dishwasher or ditch digger to remain employed, he'll have to do it,'' Clarke said.
Some of victims are planning civil lawsuits against Williams.
Between July 1992 and August 1994, Williams told 14 clients he would invest their money through his investment management company into funds and trusts that would yield high returns. Eight of the investors were hoping to finance their children's college educations.
Instead of investing the money, Williams deposited it in his business account, then used it to pay personal and business expenses, according to court papers.
Outside the courtroom Wednesday, one couple who lost about $21,000, plus $21,000 more that they invested for another family member, said the sentencing brought no sense of closure. It came on their 26th wedding anniversary.
``We're satisfied to the extent that the maximum sentence was imposed,'' said the 51-year-old Virginia Beach man, who asked not to be identified. ``Unfortunately, we don't think there's much of a chance of getting our money back.''
They seemed unimpressed with Williams' apology.
``He didn't seem too remorseful when he walked in there smiling and shaking hands,'' the man said. ``He only sounded remorseful when he got on stage.''
The couple invested $21,000 with Williams for their son's college education. The son, now 22, is an environmental science major in his final year at Virginia Tech. The parents took out loans for tuition after losing the money it took them 15 years to save.
They invested the other $21,000 for the woman's father after he was seriously injured in an automobile accident and asked them to handle some of his financial affairs.
``My father will probably not live long enough to see any of his life's savings returned,'' said the 48-year-old woman. Her father is now 72 and must watch his long-distance telephone calls, turn down his heat and scrimp in other ways to save money, she said.
``It takes your sense of trust away,'' the woman said.
The couple met Williams in 1989 at an investment seminar and made several Good investments through him that remain in place today.
Williams boasted the trappings of success - a plush office in Virginia Beach, a Rolex watch, jewelry with gold and diamonds. He drove a dark blue Mercedes with the license plate IPLAN4U, his clients said.
``We're put in a position we should be in 20 years from now,'' the former Virginia Beach client said. ``We're not going to starve, but it has changed our entire lives.''
Williams' case file contains about a dozen letters of support from investors who had good experiences with him and about a half-dozen letters from more recent investors who lost money.
In a letter dated Oct. 23, a Virginia Beach woman wrote: ``I am a 76-year-old widow. I have known and trusted Robert for over 10 years. The money I invested with Robert was all the money I had for my retirement and also for my grandson's college education. Robert knew this. It was a total of $40,500. . . . Because of Robert, the money that I have left will only last me for one year. At that time I will have to move in with my daughter and son-in-law. . . . Many dreams have been shattered because of this greedy man.''
Another Virginia Beach woman, whose 19-year-old son became a victim of Williams, wrote to say that the loss destroyed her son's dreams of college. He had invested the $15,000 he received after his father died of cancer.
``This man did more than steal my son's money - he stole his future,'' the mother wrote. ``This theft has wreaked financial havoc on both (my son) and his entire family.''
KEYWORDS: FRAUD TRIAL SENTENCING by CNB